REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Agreements to Implement a Financial Management System for the Stadium Authority [Council Pillar: Ensure Compliance with Measure J and Manage Levi's Stadium]
Report
BACKGROUND
The Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company, LLC (StadCo), and the Forty Niners Stadium Management Company, LLC (ManCo) entered into a Stadium Management Agreement (Management Agreement) to have ManCo act as the Stadium Manager and provide management services for the Levi's Stadium (Stadium) on a continual, year-round basis. ManCo is responsible for overseeing the day-to-day operations, accounting transactions, and financial reporting to the Stadium Authority for Non-NFL events, Shared Stadium Manager Expenses, and Stadium Builders License (SBL). This also includes developing personnel and accounting policies and procedures and recruiting, hiring and training ManCo staff. ManCo staff have been using StadCo's financial management system to process financial data and reports for the Stadium Authority. Although ManCo is required under Section 2.4.7 of the Management Agreement to "establish charts of accounts and accounting policies, procedures and systems, including policies, procedures and systems for payroll processing, accounts payable, accounts receivable, depository accounts, box office and reporting functions," ManCo did not setup a separate company code in the financial management systems to separately account for the Stadium Authority's financial transactions. All of the Stadium Authority's transactions are being recorded on accounts under StadCo's company code, resulting in commingling of StadCo and Stadium Authority revenues and expenses in one company code. This has caused a lack of transparency and delays in generating financial reports for the Stadium Authority because staff have to extract the data out of the statistical accounts and manually prepare the financial reports in Exc...
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